CLERMONT-FERRAND, France-Group Michelin has implemented a structural cost reduction plan aimed at saving $125 million annually in North America.
The company cited as reasons economic uncertainties, a slump in North American sales and increased material costs.
Michelin executed the cost savings plan despite a 2.8-percent increase in consolidated net sales to $3.3 billion in the first quarter ended March 31 from $3.1 billion last year.
The cost-cutting program is expected to be finalized by the end of the first half. Michelin also took other measures globally, including better inventory control, tighter cost control and the re-examination of its 2001 investment plan.